Turnaround specialist Opcapita has put its hand in its pocket to rescue computer game retailer GAME Group.
GAME went into administration last week, crippled by debts to suppliers and its banks. It now appears that suppliers to the firm, who were owed around £40m, will get nothing from the deal while banks will have to take a write-down on their lendings of 55%.
The £50m deal does mean, however, that 3,200 members of staff at 333 stores will keep their jobs.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
When GAME went into administration PriceWaterhouseCoopers closed 277 under-performing stores - those outlets will not be reopened under the current plans.
The problem for GAME was that more and more gamers have been buying products online, while some computer game producers became reluctant to let GAME sell their latest offerings in its stores for fear that the retailer's cash flow problems would prevent it paying up for stock.
Opcapita says it will try to re-employ some head office staff who were handed redundancy notices last week, while reports suggest former Halford's Chief Executive, David Hamid, will be installed as Chairman.
Opcapita already owns the electrical retailer, Comet.
Nationwide: UK house prices creep up by 0.2% - are we heading for a rebound?
Nationwide’s latest house price index shows property prices inched up by 0.2% as demand warms up - will this trend go into 2024?
By Kalpana Fitzpatrick Published
December 2023 NS&I Premium Bond winners revealed - have you won the jackpot?
Two Premium Bond holders are now millionaires as NS&I reveals December winners. Find out if you’re one of them
By Vaishali Varu Published